State Roundup: Rates, premiums, and benefits

Missouri regulators recommend double-digit decrease. The Missouri Department of Insurance recommends workers' comp insurers reduce their loss costs by 11.1 percent this year. That marks the fifth consecutive year of recommended decreases and is 6.7 percent lower than the rate reduction suggested by National Council on Compensation Insurance.

Under Missouri law, workers' comp insurers must use the recommendation of either NCCI or the department to set their rates.

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State insurance officials said the workers' comp market is increasingly competitive due to continuing improvements in workplace safety, resulting in fewer claims. Frequency has dropped by more than 50 percent in the past 15 years, they said.

NCCI suggested an overall decrease of 4.4 percent. Regulators said insurers could reduce loss costs further and still be profitable.

In addition to NCCI's proposed decrease, the department based its additional reduction on the following differences:

Indemnity and medical trend -- 2 percent.
Premium and loss development -- 2.7 percent.
Use of voluntary market data -- 1.9 percent.
Claim expense costs -- 0.1 percent.

Read more at the WorkersComp Forum homepage.

February 28, 2011

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